diff --git a/features/steps/core.py b/features/steps/core.py
index c4aa2f59..e3d79322 100644
--- a/features/steps/core.py
+++ b/features/steps/core.py
@@ -1,5 +1,5 @@
 from behave import *
-from jrnl import cli, Journal, util
+from jrnl import cli, install, Journal, util
 from dateutil import parser as date_parser
 import os
 import sys
@@ -28,14 +28,14 @@ def _parse_args(command):
     return nargs
 
 def read_journal(journal_name="default"):
-    with open(cli.CONFIG_PATH) as config_file:
+    with open(install.CONFIG_FILE_PATH) as config_file:
         config = json.load(config_file)
     with open(config['journals'][journal_name]) as journal_file:
         journal = journal_file.read()
     return journal
 
 def open_journal(journal_name="default"):
-    with open(cli.CONFIG_PATH) as config_file:
+    with open(install.CONFIG_FILE_PATH) as config_file:
         config = json.load(config_file)
     journal_conf = config['journals'][journal_name]
     if type(journal_conf) is dict:  # We can override the default config on a by-journal basis
@@ -47,7 +47,7 @@ def open_journal(journal_name="default"):
 @given('we use the config "{config_file}"')
 def set_config(context, config_file):
     full_path = os.path.join("features/configs", config_file)
-    cli.CONFIG_PATH = os.path.abspath(full_path)
+    install.CONFIG_FILE_PATH = os.path.abspath(full_path)
 
 @when('we run "{command}" and enter')
 @when('we run "{command}" and enter "{inputs}"')
@@ -161,7 +161,7 @@ def check_journal_content(context, text, journal_name="default"):
 
 @then('journal "{journal_name}" should not exist')
 def journal_doesnt_exist(context, journal_name="default"):
-    with open(cli.CONFIG_PATH) as config_file:
+    with open(install.CONFIG_FILE_PATH) as config_file:
         config = json.load(config_file)
     journal_path = config['journals'][journal_name]
     assert not os.path.exists(journal_path)
@@ -175,7 +175,7 @@ def config_var(context, key, value, journal=None):
         "int": int,
         "str": str
     }[t](value)
-    with open(cli.CONFIG_PATH) as config_file:
+    with open(install.CONFIG_FILE_PATH) as config_file:
         config = json.load(config_file)
     if journal:
         config = config["journals"][journal]
diff --git a/jrnl/cli.py b/jrnl/cli.py
index 32f05f25..84db971d 100644
--- a/jrnl/cli.py
+++ b/jrnl/cli.py
@@ -18,8 +18,6 @@ import os
 import argparse
 import sys
 
-xdg_config = os.environ.get('XDG_CONFIG_HOME')
-CONFIG_PATH = os.path.join(xdg_config, "jrnl") if xdg_config else os.path.expanduser('~/.jrnl_config')
 PYCRYPTO = install.module_exists("Crypto")
 
 
@@ -122,11 +120,7 @@ def run(manual_args=None):
         print(util.py2encode(version_str))
         sys.exit(0)
 
-    if not os.path.exists(CONFIG_PATH):
-        config = install.install_jrnl(CONFIG_PATH)
-    else:
-        config = util.load_and_fix_json(CONFIG_PATH)
-        install.upgrade_config(config, CONFIG_PATH)
+    config = install.install_jrnl()
 
     if args.ls:
         print(util.py2encode(list_journals(config)))
@@ -235,18 +229,18 @@ def run(manual_args=None):
         # Not encrypting to a separate file: update config!
         if not args.encrypt:
             update_config(original_config, {"encrypt": True}, journal_name, force_local=True)
-            install.save_config(original_config, CONFIG_PATH)
+            install.save_config(original_config)
 
     elif args.decrypt is not False:
         decrypt(journal, filename=args.decrypt)
         # Not decrypting to a separate file: update config!
         if not args.decrypt:
             update_config(original_config, {"encrypt": False}, journal_name, force_local=True)
-            install.save_config(original_config, CONFIG_PATH)
+            install.save_config(original_config)
 
     elif args.edit:
         if not config['editor']:
-            util.prompt("[You need to specify an editor in {0} to use the --edit function.]".format(CONFIG_PATH))
+            util.prompt("[You need to specify an editor in {0} to use the --edit function.]".format(install.CONFIG_FILE_PATH))
             sys.exit(1)
         other_entries = [e for e in old_entries if e not in journal.entries]
         # Edit
diff --git a/jrnl/install.py b/jrnl/install.py
index ae57fa3d..606af840 100644
--- a/jrnl/install.py
+++ b/jrnl/install.py
@@ -7,9 +7,23 @@ import glob
 import getpass
 import json
 import os
+import xdg.BaseDirectory
 from . import util
 
 
+DEFAULT_CONFIG_NAME = 'jrnl.json'
+DEFAULT_JOURNAL_NAME = 'journal.txt'
+XDG_RESOURCE = 'jrnl'
+
+USER_HOME = os.path.expanduser('~')
+
+CONFIG_PATH = xdg.BaseDirectory.save_config_path(XDG_RESOURCE) or USER_HOME
+CONFIG_FILE_PATH = os.path.join(CONFIG_PATH, DEFAULT_CONFIG_NAME)
+
+JOURNAL_PATH = xdg.BaseDirectory.save_data_path(XDG_RESOURCE) or USER_HOME
+JOURNAL_FILE_PATH = os.path.join(JOURNAL_PATH, DEFAULT_JOURNAL_NAME)
+
+
 def module_exists(module_name):
     """Checks if a module exists and can be imported"""
     try:
@@ -21,7 +35,7 @@ def module_exists(module_name):
 
 default_config = {
     'journals': {
-        "default": os.path.expanduser("~/journal.txt")
+        "default": JOURNAL_FILE_PATH
     },
     'editor': os.getenv('VISUAL') or os.getenv('EDITOR') or "",
     'encrypt': False,
@@ -34,7 +48,7 @@ default_config = {
 }
 
 
-def upgrade_config(config, config_path):
+def upgrade_config(config):
     """Checks if there are keys missing in a given config dict, and if so, updates the config file accordingly.
     This essentially automatically ports jrnl installations if new config parameters are introduced in later
     versions."""
@@ -42,17 +56,22 @@ def upgrade_config(config, config_path):
     if missing_keys:
         for key in missing_keys:
             config[key] = default_config[key]
-        with open(config_path, 'w') as f:
+        with open(CONFIG_FILE_PATH, 'w') as f:
             json.dump(config, f, indent=2)
         print("[.jrnl_conf updated to newest version]")
 
 
-def save_config(config, config_path):
-    with open(config_path, 'w') as f:
+def save_config(config):
+    with open(CONFIG_FILE_PATH, 'w') as f:
         json.dump(config, f, indent=2)
 
 
-def install_jrnl(config_path):
+def install_jrnl():
+    if os.path.exists(CONFIG_FILE_PATH):
+        config = util.load_and_fix_json(CONFIG_FILE_PATH)
+        upgrade_config(config)
+        return config
+
     def autocomplete(text, state):
         expansions = glob.glob(os.path.expanduser(os.path.expandvars(text))+'*')
         expansions = [e+"/" if os.path.isdir(e) else e for e in expansions]
@@ -63,8 +82,8 @@ def install_jrnl(config_path):
     readline.set_completer(autocomplete)
 
     # Where to create the journal?
-    path_query = 'Path to your journal file (leave blank for ~/journal.txt): '
-    journal_path = util.py23_input(path_query).strip() or os.path.expanduser('~/journal.txt')
+    path_query = 'Path to your journal file (leave blank for {}): '.format(JOURNAL_FILE_PATH)
+    journal_path = util.py23_input(path_query).strip() or JOURNAL_FILE_PATH
     default_config['journals']['default'] = os.path.expanduser(os.path.expandvars(journal_path))
 
     # Encrypt it?
@@ -90,7 +109,7 @@ def install_jrnl(config_path):
     open(default_config['journals']['default'], 'a').close()  # Touch to make sure it's there
 
     # Write config to ~/.jrnl_conf
-    with open(config_path, 'w') as f:
+    with open(CONFIG_FILE_PATH, 'w') as f:
         json.dump(default_config, f, indent=2)
     config = default_config
     if password:
diff --git a/setup.py b/setup.py
index 1578b452..09b7ba2a 100644
--- a/setup.py
+++ b/setup.py
@@ -81,6 +81,7 @@ setup(
     description = "A command line journal application that stores your journal in a plain text file",
     packages = ['jrnl'],
     install_requires = [
+        "pyxdg>=0.19",
         "parsedatetime>=1.2",
         "pytz>=2013b",
         "six>=1.6.1",